Question

A person wishes to invest $20,000 in two enterprises so that the total income per year will be $1440. One enterprise pays 6% annually; the other has more risk and pays 7% annually. How much must be invested in each?

Answer 1

To find the amount to be invested in each enterprise, we can set up an equation based on the total income per year and solve for the investment amounts.

Step-by-step explanation:

Let's assume the amount invested in the enterprise paying 6% annually is x. Then the amount invested in the enterprise with more risk paying 7% annually will be 20000 - x (because the total amount invested is $20,000).

Now, we can write an equation based on the total income per year:

0.06x + 0.07(20000 - x) = 1440

Solving this equation will give us the value of x and 20000 - x, which will tell us the amount to be invested in each enterprise.